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Should You Book Hotels Through a Travel Website or Directly Through the Hotel?

October 13, 2016
by
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There’s been lots of hype by hotels telling us to skip “clicking around” and to book directly through their sites for the best price. But is that really the best deal for paid stays?

You likely will NOT have your elite status recognized or receive elite perks like upgrades, late check-out, or amenities (though there are sometimes exceptions – it’s worth calling the hotel to add your loyalty program number to the booking just in case)

The cancellation policy may not be as flexible, or you may have to commit to a non-refundable booking

You often won’t receive the most desirable room (especially for deeply discounted 3rd-party bookings, like Priceline or Hotwire) – for example, near an elevator, lower floor, etc

You won’t earn bonus points for using the hotel’s co-branded card like you would if you booked directly

Don’t Expect Elite Status Benefits, Like Welcome Amenities or Upgrades, When You Book a Hotel Through an Online Travel Agency

Keep in mind, you’ll usually earn bonus points at online travel agencies when you use cards like the Chase Sapphire Preferred, Citi Prestige, or Citi ThankYou Premier, because most online travel agencies code as a travel purchase.

Comparing Online Travel Agency Rates Against Hotel Prices

I looked some random examples to see if booking directly through the hotel would save money. The results might surprise you!

Hilton

Booked directly through Hilton, you’d pay ~$345 for the best flexible rate. You can cancel 2 days prior to arrival without penalty, and you’ll earn Hilton points for your stay.

Plus, if you’re a Hilton elite member, you’ll get perks depending on your status (like late-check out, room upgrades when available, or free breakfast). And all members get free Wi-Fi when they book direct.

Booking Through the Hilton Website Turns Out to Be the Best Deal!

Booking.com

Booking.com has the same room for ~$383. That’s ~$38 more than Hilton’s price! However, the room also comes with free Wi-Fi and the same cancellation policy as Hilton.

You’ll Pay ~$38 More If You Reserve Your Room Through Booking.com

Expedia

Expedia has essentially the same price as Booking.com, ~$383 for the same room and cancellation policy. But Expedia does NOT offer free Internet. Instead, you’ll earn 766 Expedia+ points, which is worth ~$5.

Expedia Also Charges ~$38 More Than Hilton, and You Won’t Get Free Internet

Orbitz

Orbitz had about the same ~$383 rate and same cancellation rules. Again, you won’t get free Wi-Fi, but you’ll earn ~$11 in Orbucks (Orbitz’ reward currency).

You’ll Pay a Similar Price With Orbitz but Wi-Fi Isn’t Included Either!

So in this example, it clearly makes sense to book directly through Hilton! You’ll save ~$38, earn Hilton points and stay credits, and have your elite status recognized. Plus, if you’ve registered for a Hilton promotion, you’d earn bonus points.

To see if other locations and dates gave similar results, I ran the same experiment at the New York Hilton Midtown on November 1, 2016. Booking direct though Hilton as a loyalty program member saved at least ~$12 and is the only option that offers free Wi-Fi.

Orbitz

Unless you really prefer collecting Expedia or Orbitz points over Choice points, it’s better to book with Choice. Plus, Choice often runs promotions which allow you to earn bonus points after a certain number of stays.

The non-refundable rates were exactly the same on all websites, and Choice beat the refundable rates of online travel agencies by ~$3. Again, free W-Fi and breakfast is offered to all guests, no matter the booking method.

And like Hilton points, Choice points are likely more valuable to most than Orbucks or Expedia+ points.

Hyatt vs. Booking.com, Expedia, and Orbitz

Hyatt

Signed-in to my Hyatt account, I found a member discount rate at the Grand Hyatt Seattle for ~$267 on October 1, 2016. Complimentary Wi-Fi is provided to ALL guests, and you can cancel 24 hours prior to arrival with no penalty. And you’d earn Hyatt points for the stay, plus credit towards promotions if you’ve registered.

You’ll Pay ~$267 for a Night at the Grand Hyatt Seattle When You Book Direct

Booking.com

Booking.com‘s price is ~$30 more at ~$297! They have the same cancellation policy as Hyatt.

Booking.com Charges a Whopping $30 More for the Same Night – and Same Cancellation Policy

Expedia

Expedia‘s rate is even higher at ~$299. The cancellation policy is also the same, and you’d earn Expedia points.

Expedia’s Rate Is Even Pricier – ~$32 More Than Hyatt

Orbitz

Orbitz has the same price as Expedia (~$299) and the same cancellation policy. You’d earn ~$9 in Orbucks, which isn’t worth it!

Orbitz Also Charges ~$32 More Than Hyatt

I did find one instance where an online travel agency beat a direct booking. On November 1, 2016, at the Hyatt Regency Miami, you can save ~$10 by using Booking’s non-refundable rate. Hyatt’s rate is ~$233 but is refundable.

I tried one other date and overall, I found booking direct with Hyatt is cheaper on average by ~$33 for refundable rates, and either the same or slightly cheaper for non-refundable rates. It’s better to book direct with Hyatt.

Booking Direct Is Your Best Bet

Based on the evidence, it’s almost always better to book with the hotel chain directly:

In the 9 experiments I ran, I saved an average of $17

Wi-Fi was always included, but that was not always the case with online travel agencies

The cancellation policies were almost always identical

The hotel points you’d earn are generally more valuable than those of the online travel agencies

If you’re not loyal to a specific brand, it makes sense to start your search at a website like Expedia or Orbitz, then book direct with the hotel chain of your choosing. That way you can comparison shop and find the best deal for your travel dates.

Or consider narrowing down your search by checking paid rates on Hotel Hustle.

Bottom Line

Now that many hotel chains offer discounted rates to loyalty program members, it’s almost always a better deal to book with the hotel chain directly, instead of an online travel agency.

I experimented with different chains and hotels and found the hotel matched or beat the online travel agency price just about every time. But always shop around to be sure you’re getting the best deal, if price is your only concern.

When you book direct with the hotel, you’ll earn points, stay credits, and promotion bonuses, unlike when you book through 3rd party sites.

Plus, with online travel agency bookings, you generally won’t have your elite status perks recognized. So you might not get benefits like free breakfast, welcome amenities, and late check-out.

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17.99% - 24.99% Variable

$95

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Editorial Note: We're the Million Mile Secrets team. And we're proud of our content, opinions and analysis, and of our reader's comments. These haven’t been reviewed, approved or endorsed by any of the airlines, hotels, or credit card issuers which we often write about. And that’s just how we like it! :)

11comments

Let me throw in my two cents as I travel frequently. My experience is that the chain hotel’s own booking sites are always cheaper but that third party sites, such as Orbitz or Expedia are usually cheaper for non chain hotels. To me the perks of Hilton Diamond, IHG Spire/IC Ambassador or SPG Gold make it worthwhile to stay with one of those chains wherever possible. My experience of checking with Rocketmiles and other point sites is that their rates are invariably more expensive. It may be worthwhile to use them though if you need a small number of miles for a redemption target as the extra on the hotel is usually cheaper than buying the miles. On a recent vacation add on stay in Switzerland, whilst the Zurich rates were better with SPG, when I stayed in a resort hotel in Eastern Switzerland, the Orbitz rate was the cheapest third party site and some 30% cheaper that the small hotel’s own Internet rate. I booked on Orbitz and they still gave me an upgraded room on arrival when I showed my Hilton card and asked if they could do anything for me as a frequent hotel guest. Never hurts to ask! I have seen very attractive rates using British Airways Avios points for hotels. Sometimes they are crazy expensive but sometimes there are very good deals out there. Also sometimes that add on rate taking a hotel with a BA flight is extremely attractive. Bottom line is that it is worth spending 20-30 minutes checking out the options.

I think shopping around a little doesn’t hurt. I think it depends on where you staying, when, and how long. Check both the website and App for deals. Some deals may not be on both, or one could be cheaper than the other. I joined all the hotel awards, and I also joined the players clubs for my favorite casinos. If you are going to Las Vegas you can find better deals either way. In my experience, the length of stay, and if you can cancel are the most important factors there. And some casinos are partners with airlines, and hotel award programs, or owned by a hotel conglomerates. So you could double dip on points, miles, or player awards if you go with one of them.

Got a better deal by booking a Madrid hotel in combination with cheap flight from Lisbon purchased on travelocity website. First booked air only and declined the offer to book hotel in conjunction with flight purchase. Several days later received offers from Travelocity again, and the hotel I wanted on the Gran Via was available for less than the price offered on the hotel’s website. Stayed at the hotel in the past booked through hotel website and received a very nice room. So it will be interesting to see if the room assignment will be worse. Did call the hotel to confirm that I, in fact, had a booking.

I prefer to use Booking.com for hotels in Japan because the website is so easy to use, AND I can limit my search to non-smoking rooms with free cancellation, AND I can call their number to ask in English questions about my reservation, AND I can see all my reservations in chronological order on their website (or app on my phone). If there’s a problem, I have someone who speaks English to take my side.

If you’ve ever tried to use a Japanese hotel’s website, even in English, you’ll be puzzled – first they ask you how much you want to spend! Inscrutable.

I think I’d use Booking.com for any overseas hotel booking outside Europe.

In all of your experiments, you checked chain and name brand hotels. If you are booking a boutique hotel, I always find cheaper rates on the deal sites like hotels.com and booking.com. For example, the wedding hotel my friend had a wedding block at in Miami. My hotels.com rate was $100 cheaper than her “wedding rate” which was $100 cheaper than the regular price (so I saved $200!) I recently booked a room at The Ace in Panama, and their rate online was $85 more than booking.com. If you aren’t staying at a Hyatt, Hilton, Marriot, or SPG, use the discount sites!

Editorial Note: We're the Million Mile Secrets team. And we're proud of our content, opinions and analysis, and of our reader's comments. These haven’t been reviewed, approved or endorsed by any of the airlines, hotels, or credit card issuers which we often write about. And that’s just how we like it! :)